"Homeowners Insurance" - Most home buyers focus on the selling price of a home and taxes during their homebuying journey. Those two factors are what are mostly calculated... but most, ignore the homeowners insurance factor while looking at their budget.
The National Association of Insurance Commissioners said the average homeowners insurance policy, covering the building, personal property and liability, cost $822 in 2007. However, some states can be significantly pricier: Florida and New York, for example, each had an average cost of more than $1,000 that year. Then, there are the potential add-ons and extra coverage for flooding, wind damage or earthquakes.
 Homeowner Insurance Shopping Tips
How much insurance should you have? Homeowners insurance pays what it's going to cost to rebuild a house and replace your personal possessions in it. Homebuyers can ballpark the cost of basic insurance by multiplying the square footage of the home by local building costs per square foot. The group says such local figures may be available through real estate agents, local homebuilders' associations or insurance agents.
Condition and location of the house makes a difference in the annual premiums. For example, a home closer to the local fire department and to professional, full-time firefighters usually costs less to insure. Poor or unsafe plumbing or electrical systems typically adds to the annual premium.
Flood, wind damage, earthquakes or other natural hazards coverage. Flood insurance isn't covered under standard policies, though it's available from the National Flood Insurance Program, which is serviced by private carriers and some specialty insurers. Wind damage may be covered by private insurance or through state-run programs. Earthquake coverage requires an endorsement to a homeowners insurance policy or separate insurance. Some homes in Hawaii might need tsunami insurance.
Raising deductible amount. If you have a good credit history, some insurers may offer you a discount. Other potential discounts: multi-policy, for having homeowners, car or other policies with the company; having smoke detectors, fire sprinklers or fire extinguishers; being over 55 and/or a longtime policy holder; security alarms that connect to an outside service; wind-resistant-shutters, and others.
Home's insurance "rap sheet" to see whether certain undisclosed problems may have befallen the place in years past by asking the seller to provide a loss-history report. The loss-history report is a record from the insurance industry that shows what, if any, claims have been made for the property in the past five years. The reports might reveal claims related to flooding or electrical fires, for example.
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